SINGAPORE (Sept 24): Keppel Land China is set to acquire a 30% stake in Win Up Global (WUG) for a total consideration of HK$141.4 million ($24.8 million).

In a regulatory filing on Tuesday, Keppel says it has entered into a share sale and shareholder loan transfer agreement with Chinese real estate developer Topchain Group. This will see Keppel owning a 30% equity interest in WUG, while the remaining 70% will continue to be held by Topchain.

WUG has entered into a sale and purchase agreement to indirectly acquire and own Westmin Plaza, an office and retail development in Liwan District, Guangzhou, China. 

Westmin Plaza offers 42,533 sqm of gross floor area spread across three floors of retail space and 14 floors of office space.

The investment marks Keppel Land China’s maiden entry into Guangzhou. Keppel Land China is a wholly-owned subsidiary of Keppel Land, the property arm of Keppel Corporation.

Keppel’s investment amounted to about HK$141.4 million, includings a cash consideration of HK$95.9 million to buy over Topchain’s existing shareholder loan to WUG, and HK$45.5 million for its 30% share in a new shareholder loan to WUG.

The transaction is expected to be completed by end September, but is subject to the satisfaction of preceding conditions, including but not limited to the relevant shareholder loan.

Keppel Corp says that the proposed acquisition is not expected to have a material impact on its net tangible assets per share or earnings per share values for the current financial year.

“This acquisition is in line with Keppel Land China’s strategy to grow our commercial portfolio in China, with a focus on first-tier cities. It also marks our maiden entry into Guangzhou, one of the cities with the fastest economic growth in China,” says Ben Lee, President of Keppel Land China.

“The rejuvenation of Westmin Plaza will allow us to capture growth opportunities in Guangzhou’s growing commercial real estate market as the city continues to develop into an international metropolis,” he adds.

As at 12.47pm, shares in Keppel Corp are trading 9 cents higher, or up 1.5%, at $6.13.